S&P 500 and 3-Month VIX Relative to VIX (VIX3M/VIX)

The 3-month VIX relative to the VIX closing at an oversold level below 1 is a potentially significant indicator of market sentiment. This can be interpreted as a sign of capitulation and possibly a contrarian bullish signal.

Image: BofA Global Research

S&P 500 and 3-Month VIX Relative to VIX (VIX3M/VIX)